credit: Teamxbox.comI know some of you don't like to read too much, so I'll highlight the important stuff!What would you do if you were playing Halo 3 and either a.) You here High School Musical songs b.)Teletubie songs over the epic scores while you frag your friends? I can guarantee you that unimaginable things will happen. Gamescore won't climb as high, you lose your rep, your girlfriend (or boyfriend) leaves you, your [insert pet] dies and you say goodbye to this cruel world.
Okay, so maybe its not that bad, but it would still screw with the mood. The latest craze in the advertising industry has been "in-game advertising". Of course, video games HAVE become bigger than the movie industry, and of course CEO's want your money. Some of you may not know, but it's becoming really, REALLY big, and it's about to get bigger. So what exactly IS the deal with ads in your console? Will games be plastered like the above pic? Please, sit back, read, and grab a Pepsi.:P
Some games have noticed the $10 increase on many of the next-gen games on the PS3 and Xbox 360. Companies like EA and Ubisoft have said that this is done to help cover the increasing cost for games. With the introduction of all the dual-core processors, Blu-rays, and HDTVs, the rush of technology isn't very easy on developer's pockets (or ours). An average game costs about 10 million to make. A huge portion of that (%40) comes from advertisment and actual game development (that doesn't included employees, royaltee fees, etc.). That was back in the PS2/GCN/Xbox ear, now ith games like Assasin's Creed and Mass Effect, the prices have soared even 
more. And Microsoft and Sony are taking a hit losing money on their consoles.A Konami representative has already stated that to cover for the costs of Metal Gear Solid 4, they need to sell about 1 million the first day. I don't know if they are just saying that to push the game or not, but let's say they do. I'd estimate MGS4 costing around $60 million-at least (Final Fantasy VII was around $100million). Not easy money. PS3 sales aren't guaranteeing that right now. The best way to be the problem is in game advertisements.
Companies have already discussed this issue, although its still being worked out. From what it looks like, the ads will be displayed like those ads before the movie at the theatres. You'll probaly see Burger King and Mountain Dew commercials before Halo. Heck, we might even see movie commericals when the game boots up.
However, it won't just be video reels.
Companies are strategically placing ads in the game istead of just poping it up. We are seeing product placement. Actually, we're seeing it now. In Splinter Cell, there was the Sony Ericcson P900. In SSX3, there were DNL and Honda advertisments in the billboards and in Red Steel the dumpsters sported the Waste Managment logo. Pikmin has Duracell and Dr. Pepper items laying about everywhere. These aren't all bad, because the placement feel right. They make that connection to our world and help immerse us even more.It's going to get even bigger with games like Sony's home, which you could call a game about advertisments. The more realistic games become, the more product placemetns we'll see. Grand Theft Auto (remember San Andreas' songs?) could be a big contender too.
Game ads can get in the way, however. Gamers tend to not care about in game ads. What's scary is the fact that ads get out of hand. What if you're playing Gears of War and there's an ad poster for a chick flick or....teh Teletubies?:P Yeah, would set right with me either. It doesn't seem like that now, but what happens when advertisers are willing to spend big bucks? Wouldn't Epic rather get $20 million for advertising Mean Girls than 5 million for Pepsi (okay, bad example, but still)?
I just hope that the ads don't get really ridiculous. Ads on clothing, cars, toilets, what ever is in the game. I don't want ads in the sky. The ads also shouldn't be so obtrusive that they detract from gameplay. Um, yeah, if there was that whole Jessica Alba scene from Sin City playing on a billboard then I don't think I'd ever be able to play a sports game (or any game with billboards) again.
Of course, ads aren't all bad. Would you guys really like it if Madden or Fifa had fake ads instead of Addidas or Nike? The ads, I do say, help make the world more beliveable and real. I think we all have gotten used to ads in some games at one point or another.
With the current success of online gaming, companies are now adding up-to-date advertisements in gaming menus like the Xbox 360 Dashboard and in online lobby menus. This way they can put less ads in games or allow a variety of ads while, say, you download some Disney flick from the Xbox Live Marketplace.
It is expected that about a $2.6 billion increased in ad revenue could result from in game advertsiemtns, as companies are already seeing increases in profits. EA has already seen about a $40 million increase.
The benefits? Of course, we might see cheaper games. But the big bonous would be more features in games. A lot of times game companies cannot put certain ideas in games. For example, Rare had to can the Gameboy camera implementation in the orginal Perfect Dark. With increased profits we might even see less game code screw ups. Remember the broken-legged horse in Assassin's Creed? Well yeah, we probaly wouldn't see that if they could lower the production cost before the game was released.Right now, in-game advertising is stilll being fooled around with. Companies are seeing major benefits (and so are gamers). From the looks of it, they'll be here to stay-as long as we don't start hearing High School Musical songs in Halo.....
As always, please critique my article, so I can get better. Do what you please, comment, fight back. I don't care (no language!).
Also these pictures are not mine. The top one (GoW) comes from Teamxbox and the others come from cnn.com and Google images.
